The Thai economy weakened due to lower agricultural and industrial output, though tourism improved. Merchandise exports, particularly to the U.S., declined. Key areas to monitor include manufacturing, trade policies, and tourism performance.
Summary
- The Thai economy softened from the previous month, due to weaker agricultural and industrial output, which weighed on trade and freight transport services. In contrast, the tourism sector improved, supported by both domestic and foreign tourism. Meanwhile, merchandise exports, private consumption and investment remained stable. Manufacturing production continued to decline due to sluggish demand in some sectors, high inventory levels in certain products, and temporary production halts.
- Merchandise exports to the U.S. declined for the first time since the implementation of U.S. import tariffs as well as electronic product exports softened slightly, after several months of strong growth.
- Employment conditions remained broadly stable, however, the construction sector continued to deteriorate. Meanwhile, the ratio of total and new unemployment claimants to total insured people declined.
- Key issues to monitor include: 1) the recovery of manufacturing production 2) the impact of U.S. trade policies, 3) the performance of the tourism sector, and 4) government stimulus measures
The Thai economy weakened in August due to declines in agriculture, manufacturing, and related services. Manufacturing, especially in automobiles and food, suffered from weak demand and high inventories. Private consumption, investment, and merchandise exports remained stable, while electronic exports decreased. Tourism improved with higher revenue from domestic and foreign visitors. Government spending slightly contracted due to reduced capital expenditures.
Source : https://www.bot.or.th/en/news-and-media/news/news-20250930-2.html
